OR Royalties (OR.TO) was at last look up 1% in US premarket trade after the company said it is acquiring a precious metals stream on Canadian Copper's (CCI.CN) New Brunswick assets for US$28.0 million.
A statement noted the assets comprise the Murray Brook properties and the Caribou property, and include the Caribou Processing Plant.
OR Royalties will pay US$5.0 million cash upon closing, with US$23.0 million funded quarterly in line with project construction budgets, a statement said. A US$35.0 million concentrate prepayment facility has been provided by Ocean Partners UK, securing the full construction financing required to advance the project into commercial production.
Concurrent with closing, OR Royalties will subscribe to US$4.0 million in Canadian Copper shares at C$0.75 apiece.
Canadian Copper will deliver refined silver and gold equal to 20% of the payable silver and gold in concentrate or any other product for the life of mine to OR Royalties. This does not include payable gold from Murray Brook.
"Canadian Copper's Murray Brook Project checks all of our strategic boxes; the integration of Murray Brook and the Caribou Complex creates a premier brownfield polymetallic project with significant precious metals credits in a Tier-1 mining jurisdiction. Thanks to existing infrastructure and strong alignment with local stakeholders, the project benefits from a significantly accelerated development timeline. We are excited to partner with Canadian Copper as they advance toward a mine-and-mill restart, which is expected to deliver high-margin GEOs to OR Royalties before the end of the decade," said OR Royalties chief executive Jason Attew.
OR Royalties shares closed down $0.12, to $54.44 on Monday on the Toronto Stock Exchange.